Company Expansion and Strategy - Alibaba expanded its global cloud computing availability, including a new availability zone in Mexico and plans to build data centers in Malaysia, Thailand, and South Korea over the next three years [1] - The company aims to increase efforts and investments in international data centers to fuel growth [1] - Alibaba Cloud's international expansion began in 2015, with mixed results so far [2] Market Position and Competition - Amazon, Microsoft, and Google collectively hold around 67% of the global cloud market share, while Alibaba accounts for just under 5% [2] - In China, Alibaba dominates with a 39% market share and is a top player in Asia [2] Leadership and Recent Developments - Selina Yuan, President of Alibaba Cloud's international division, emphasized the importance of AI products for growth [1] - The cloud division recently scrapped a planned IPO and underwent a management reshuffle, signaling a turbulent period [1]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions [1] Company Summaries - **Alibaba Group Holding Limited (BABA)**: This Chinese e-commerce giant has seen its current year earnings estimate revised downward by 8.1% over the last 60 days [1] - **California BanCorp (CALB)**: The bank holding company for California Bank of Commerce has experienced a 5.7% downward revision in its current year earnings estimate over the past 60 days [1] - **First Reliance Bancshares, Inc. (FSRL)**: The bank holding company for First Reliance Bank has had its current year earnings estimate revised downward by 8.7% in the last 60 days [1]

Group 1 - Alibaba's Hong Kong-listed shares fell over 5% following a report about the company considering selling convertible bonds to raise $5 billion [1] - The shares ended the trading day 5.24% lower, with a drop of more than 6% earlier in the day [1] - In premarket trading in New York, Alibaba's NYSE-listed shares were down 2.21% [1] Group 2 - Bloomberg reported that a bond offering could emerge as soon as this week, although CNBC could not independently confirm this [1] - Earlier in the week, JD.com announced a similar move with a $1.75 billion convertible senior note offering due in five years with a 0.25% coupon [1] Group 3 - Alibaba experienced a challenging 2023, including a significant corporate structure overhaul and an 86% decline in fourth-quarter net profit [2] - In February, the company announced an increase in its share buyback program by $25 billion to attract investors [2]

Group 1 - Michael Burry's hedge fund, Scion Asset Management, has increased its holdings in Chinese stocks to over 20% of its total portfolio, with notable investments in JD.com, Alibaba, and Baidu [1][2] - Burry purchased 160,000 shares of JD, 50,000 shares of Alibaba, and 40,000 shares of Baidu, marking a significant increase in his positions [1][2] - The total percentage of Burry's investments in these Chinese stocks rose from 12.26% to 22.34% of his portfolio [2] Group 2 - The Morningstar China Index has declined nearly 17% over the past three years, leading to discounted valuations for major Chinese companies [3] - Alibaba, often referred to as the "Amazon of China," has seen its stock price drop from a peak of $309 in 2020 to around $83 [3] - Baidu and JD.com are also positioned as significant players in the e-commerce and internet services sectors, similar to Alibaba [3]

Group 1 - The article mentions that Parkev Tatevosian, CFA, has no position in any of the stocks mentioned [1] - The Motley Fool recommends Alibaba Group, indicating a positive outlook on the company [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services, which could influence his opinions [1]

Core Viewpoint - David Tepper's Appaloosa fund increased its stake in Alibaba by 159% in Q1 2024, indicating a potential shift in investor sentiment towards the company despite ongoing U.S.-China tensions [1]. Investment Analysis - Tepper's aggressive investment in Alibaba may prompt other investors to reconsider their stance on the stock, especially given his reputation as a seasoned investor [1][3]. - The stock has risen nearly 30% since its 2024 low on January 18, and it currently trades at a P/E ratio of around 20, suggesting it may still be undervalued despite a previous multiple of 10 [3][4]. - Alibaba's net income for fiscal 2024 was 71 billion renminbi ($11 billion), a 9% increase from the previous year, yet the stock trades below its IPO price from nearly a decade ago, making it an attractive option for long-term investors [4]. Risks and Considerations - Alibaba's stock is represented as an American Depositary Receipt (ADR), which carries specific risks, particularly due to past threats of delisting by the SEC and ongoing U.S.-China tensions [2]. - Risk-averse investors are cautioned against following Tepper's lead due to the potential for renewed regulatory scrutiny and geopolitical risks affecting the stock [5].

Alibaba’s (BABA) domestic e-commerce arm, Taobao and Tmall Group, announced a partnership with the Chinese short video platform, Douyin, to launch the "Star Cube Plan."The "Star Cube Plan," formed by the integration of Alibaba-affiliated digital marketing platform Alimama and Douyin's digital marketing tool Xingtu, will help domestic merchants on Taobao and Tmall platforms to convert Douyin users into active customers.The merchants can post advertisements on Douyin and track user behavior on their Taobao an ...

Here's why investors should consider adding the Chinese tech giant to their portfolios.Alibaba (BABA -1.82%) stock is becoming more popular with billionaire investors. Two well-regarded hedge fund managers greatly increased their stakes in the company during the first quarter.David Tepper of Appaloosa Management made the Chinese e-commerce giant his top holding after more than doubling his position in Q1. Alibaba now represents about 12% of his portfolio. Tepper is worth an estimated $20 billion, according ...

Alibaba, Vici Properties, and Kraft Heinz are still great value plays.When it comes to the stock market, $1,000 might seem like pocket change. After all, a single share of many of the market's top stocks already cost hundreds or even thousands of dollars.However, most brokerages now allow investors to buy fractional shares of companies via commission-free trades. Therefore, it's actually easy for investors to gradually build up positions in their favorite stocks with less than $1,000. But before you start b ...

Robert Way In beginning this article about Alibaba Group Holding Limited (NYSE:BABA) I can make a rare statement and write a sentence I could seldom write in the past few years. Since my last article was published on February 15, 2024, Alibaba increased 18% and clearly outperformed the S&P 500 (SPY). Data by YCharts But we should not obscure the fact that Alibaba is still trading way below its previous all-time high, and almost everyone who bought Alibaba in the last few years is still in the red. In my ...